Average revenue per paid app plummets 27% in 2012

Consumers across the globe spent more than $8bn on premium mobile application downloads in 2012, an increase of 27 per cent compared to 2011 figures, according to new data from Research2guidance. However, average revenues per paid app dropped from $26,720 in 2011 to $19,560.

“There are now so many applications available that supply even exceeds demand,” Research2guidance said. “As a result, the average revenue of paid applications generated in 2012 is 27 per cent lower than in 2011. Such a decrease is in line with previous years and could eventually lead to a development where paid apps are no longer profitable. This might lead to a similar situation as the Internet one where paid content has proved to be not anymore a lucrative business model.”

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